LPL Succeeding in Retaining NPH Advisors

LPL Financial is on track to pull in 70% of the revenues generated by two broker-dealers within National Planning Holdings, which it agreed to buy in August. So reports InvestmentNews.

Advisors from National Planning Corp. and Investment Centers of America will be the first to move; they’re set to join LPL by the beginning of December. The two businesses generated a combined $490 million of revenues in 2016; 70% of that total, which LPL expects to land, equals $343 million, the publication points out.

Advisors from Invest Financial Corp. and SII Investments, the other two BDs under the NPC deal, are to follow early next year.

The news suggests that LPL is having success transferring NPC advisors into the company. Big rivals have been going after those brokers hard: Commonwealth Financial, Cambridge Investment Research and Securities America could succeed to the tune of $100 million in new revenue, industry executives tell InvestmentNews.

At an investor presentation Wednesday, LPL chief Dan Arnold said the firm has had “approximate production retention at 70%, and that could vary slightly or marginally,” the publication reports.

LPL’s $325 million deal for the BD network also features incentives of up to $123 million depending on how much of brokers and their books remain with the company.

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